For the first time in around 5 or 6 years the cost of building and finishing a new home is more expensive than buying a similar established property, according to RE/MAX WA Regional Owner, Geoff Baldwin.
“Mainly due to the price of land but also influenced by the increasing material and construction costs having to be paid by builders, the cost of buying land and building has overtaken that of established properties.
“This is especially the case in Perth’s northern suburbs where it is now almost impossible to buy land less than $200,000 which, when coupled with building costs and applying the finishing touches to a new house, pushes the cost up to well over $400,000.
“People are starting to do the numbers and are realising that, although there is a small saving in stamp duty, this is far outweighed by not having to rent or maintain their current mortgage and also having to come up with graduated payments while the house is being built.
“Another bonus with established properties is that the previous owner has usually spent a considerable amount on added extras like pergolas, pools, gardens, etc that do not always reflect in a higher price.
“Obviously there will always be people who prefer to build new however it is a worthwhile exercise to have a look around and make some financial and lifestyle comparisons before making a firm decision”, Mr Baldwin said.